Work is in progress on changes in regulations regarding consumer bankruptcy, which are likely to come into force this year. Until now, the process has been complicated and it was difficult to announce consumer failure, which is why it did not enjoy much popularity.
After the changes, the procedure is to be simpler, and will not pay so much attention to the causes of insolvency. Downward consumer help you free yourself from debts, but to pay your debt will be spent all your assets. I also asked the opinion of lawyers from Legal Advisors, who analyzed how they were working on the Consumer Bankruptcy Act in 2019.
Consumer collapse is the amortization of the debts of a person who does not conduct business. In order to obtain it, you must submit an application to the court together with the relevant justification. The court can forgive your debts if you are unable to pay them due to non-culpable action or gross negligence.
Consumer drop – it will be easier?
So far, the court has rejected the application if in the last 10 years:
- bankruptcy proceedings have already been carried out against you and have been discontinued at your request,
- failed to implement the plan for the payment of creditors,
- your bankruptcy procedure ended with total or partial waiver of liabilities,
- you have received a final judgment against the interests of your creditors.
After the changes, there was more room for maneuver if the above situations arose, but could be explained by humanitarian considerations or reliability . For example, if you did not complete the repayment plan because you were seriously ill or elderly, you can not start work. However, you will have to prove it in court. Thanks to this, consumer bankruptcy will be sought by almost everyone who has shown that there are humanitarian or compliant reasons in relation to him.
Changes in consumer bankruptcy 2018
Without taking into account these considerations, your conscience can only refuse your application if, during the 10 years preceding the application, you receive e. a ban on running a business, or a convicted prison sentence for a crime, regulated in the penal code.
Currently, the process of announcing consumer bankruptcy begins with the fulfillment of the application and it is at this stage that the court verifies whether or not they have led to their problems with services “as a result of a non-culpable action or gross negligence. ‘ This means that, for example, you have no influence on the change in the franc rate of your mortgage and therefore you can not pay it.
In the new version of the Act, issues of intentional negligence or recklessness of debt are verified only at the stage of the repayment plan. Therefore, the court will not investigate the causes of your debts so far.
Problematic obligations that you can not pay due to illness, unhappy events or life failures will be included in the repayment plan for up to three years, and the remaining part of the debt will be forfeited.
If, however, you have led to your financial problems in a deliberate way, i.e. you have been taking carelessly loans or living over the state, you will be able to pay the debt The connection is longer – from 4 to 7 years. No credit will be remitted, but you will be able to communicate with your creditors without having to go to court.
Faster bankruptcy procedure for people without property
Another change is the acceleration of the consumer bankruptcy process for people who have no assets or income (eg they are maintained by family members). In this group, the liquidation phase and repayment plan are omitted, and bankruptcy is announced already at the opening of the bankruptcy procedure.
In short, he would grant such a person to a judicial supervisor who would be charged with verifying that the debtor did not have any property. After confirming this fact, the court proclaims bankruptcy and will remove all liabilities towards that person without setting a repayment plan.
Consumer fell 2019
You often ask in comments and e-mails to me, if you know something new in the field of work on the amendment of bankruptcy law. I was supported by lawyers from Legal Advisors who advised me on my opinion. What changes will take place in consumer bankruptcy in 2019?
With the beginning of March 2019, the Council of Ministers resumed work on a draft amendment to bankruptcy law. Earlier, it was so, that judgments at the stage of assessing the consumer bankruptcy application were decisive for whether he was entitled to the debtor. All the different courts could therefore look at the same situation in a different way. This led to the fact that persons interested in remitting debt traveled to these more liberal institutions. There were huge queues, and the conclusions were considered infinitely.
The biggest change is that the legitimacy of the bankruptcy application is to be assessed not at the stage of its submission, but only when determining the plan for the payment of creditors. There are unknown revocation modes to be introduced, the procedures are to be simplified, and the part of courts will be taken over by trustees.
What will change the amendment to bankruptcy law in 2019?
Lawyers at Legal Advisors predict that bankruptcy is likely to come sooner or faster? Rather not – changes in benefits will cause more demand. It is worth, however, armed himself with patience to successfully deal with pledges. Consumer drop is often the only way to get out of the gray area and return to normal functioning.
It is worth taking advantage of consumer bankruptcy, mainly because from the moment of its announcement your debts stop growing. It is therefore a way to stop the spiral of debt in which you have been involved and a good first step to pay your loans.